United Airlines (UAL) shares opened in the red this morning after management warned fuel costs are now expected to be about $6 billion higher than their initial estimate at the start of 2026.
That worrisome forecast is tempering an otherwise stellar Q2 earnings release, featuring market-beating earnings of $1.99 per share on $17.67 billion in revenue.
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Following today’s decline, United Airlines stock is down some 14% versus its recent high.
www.barchart.comShould You Buy the Dip in United Airlines Stock?
According to United Airlines, fuel expenses came in up an alarming 84% in the second quarter due to the Iran war, but it has a strategy in place to offset this drag.
In fact, management expects to cover at least 80% of these energy costs in the current quarter (Q3), moving to a full (100%) recovery in the final quarter of 2026.
Its confidence is rooted in robust travel demand across both premium and economy seating.
Premium segment revenue alone soared 16% in Q2, underscoring strong pricing power that allows the carrier to pass on higher fuel costs to eager travelers without hurting load factors.
Together, these positives make UAL shares attractive to buy on the post-earnings dip today.
What Else Makes UAL Shares Worth Buying Today?
Another compelling reason to load up on United Airlines shares is management’s raised guidance.
In its press release, the firm said it now expects adjusted earnings per share (EPS) to fall between $9 and $11, lifting the lower end of the range by $2 from its April forecast.
This optimism is underpinned by a major expansion of the premium offerings, loyal flyer engagement, and high-tech additions like Starlink internet.
From a technical perspective, investors should note that UAL remains comfortably above its major moving averages (50-day, 100-day, 200-day), reinforcing that its broader uptrend remains intact.
What’s the Consensus Rating on United Airlines?
Wall Street analysts also remain largely bullish on United Airlines for the remainder of 2026.
According to Barchart, the consensus rating on UAL stock sits at “Strong Buy” currently with the mean price target of about $153 signaling potential upside of more than 30% from here.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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